Sunday, May 25, 2014

Epilogue to the article about economic development of Islamic countries (20)

The author continues:
“The major economic impact of low female participation is due to the fact that one-income families have lower incomes than two income families.
If these women were engaged in paid employment, increasing the labor force by 30%, it is not unreasonable to assume there would be an additional contribution to national income of around 10%.
Whatever the figure may be, if a large proportion of the potential workforce does not work, total national income is reduced by a considerable amount.
Furthermore, this is a percentage of national income that is forgone every year.
This relative income loss persists every year.
Therefore income continually forgone represents an accumulating loss in potential national prosperity.

The limitation on the labor force participation of women reduces potential production and income.”

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